Fact Pattern 42-1B

question 5

Multiple Choice

Fact Pattern 42-1B
Sid,a director of Tech Software Company,learns that a Tech engineer has developed "Ur Call," a new,exciting video game.Sid buys Tech stock and tells his friend Velma,who also buys Tech stock.When the new game is released three weeks later,Sid and Velma sell their stock for a big profit.
-Refer to Fact Pattern 42-1B.Under SEC Rule l0b-5,Sid would not be li?able if he had waited to buy Tech stock until

• A)after Sid told Velma of the new game.
• B)after Velma bought Tech stock.
• C)after the public release of the game.
• D)just before the game was released.

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Definitions:

Decoders

Devices or individuals that translate encoded data or signals back into a recognizable form.

Frame Of Reference

The context, perspective, or background that influences how an individual perceives and interprets information.

Encoding

The process of converting ideas and thoughts into a communicable form, often involving language or symbols, in the context of communication.

Decoding

The process of interpreting and understanding messages or information received from others.